News

Final Judgment in SEC vs. LBRY Sets Precedent For Ripple And Coinbase Battles

Key Points:

  • US District Court finds LBRY, Inc. liable for violating Section 5 of the Securities Act of 1933 in the SEC vs. LBRY case.
  • The court issues a Final Judgment permanently restraining LBRY from violating Section 5 and participating in unregistered crypto asset securities offerings.
  • The ruling prompts speculation on the potential impact of ongoing SEC litigation involving Ripple and Coinbase, raising questions about secondary sales and the outcome of future judgments.
In a recent development, the United States District Court for the District of New Hampshire has issued a final judgment in the case of Securities and Exchange Commission (SEC) vs. LBRY, Inc.
Final Judgment in SEC vs. LBRY Sets Precedent For Ripple And Coinbase Battles 4

The ruling holds LBRY, Inc. liable for violating Section 5 of the Securities Act of 1933, raising implications for ongoing legal battles involving Ripple and Coinbase.

The Court’s decision, granted on November 7, 2022, came after the SEC’s Motion for Summary Judgment, establishing LBRY’s violation of Section 5. Following the ruling, the SEC sought the entry of a Final Judgment, which has now been granted by the Court.

Under the Final Judgment, the company is permanently restrained from violating Section 5 of the Securities Act and participating in any unregistered crypto asset securities offering, as stated in Section 21(d)(5) of the Exchange Act.

While the LBRY case primarily focused on Section 5 violations, it did not address secondary sales or the Major Questions Doctrine. This raises questions about the potential outcome of the ongoing litigation involving Ripple and Coinbase, which also faces similar allegations related to the sale of XRP as an unregistered security.

Final Judgment in SEC vs. LBRY Sets Precedent For Ripple And Coinbase Battles 5

XRP Lawyer John Deaton and Ripple’s Chief Technology Officer, David Schwartz, have expressed their expectations of a summary judgment by Judge Torres in the Ripple case by September. Deaton highlights the SEC‘s reference to the LBRY judge’s summary judgment opinion in the Coinbase case, arguing that the judge did not differentiate between direct sales from the issuer and secondary sales on exchanges.

Final Judgment in SEC vs. LBRY Sets Precedent For Ripple And Coinbase Battles 6

The final judgment in the LBRY case sets a precedent and brings attention to the legal battle between the SEC, Ripple, and Coinbase, adding further complexity and anticipation to the outcome of these cases.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Inflation Warning By Vanguard Amid Tariffs And Labor Issues

Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…

8 minutes ago

Clanker Token Trading Volume Hits $59.8 Million High

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

36 minutes ago

Bitcoin Spot ETF Inflows Hit $1 Billion Led By BlackRock

Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…

59 minutes ago

New York Techie Bagged $72M from $15K Investment in Ethereum — Here’s How BlockDAG Can Offer Similar Jackpot

Discover the success story of a New York tech entrepreneur who made $72M from a…

1 hour ago

Best Altcoins to Buy Today: Qubetics Rides 1000x Potential to Hit $2.6M, Ethereum Stays Rangebound, Tron USDT Transactions Hit $52B

Discover the best cryptos to buy and hold today: Qubetics leads with 1000x potential, Ethereum…

3 hours ago

Trump Media Company Is Pushing New Venture For Crypto Service

With the platform facing a cracked whip, Trump Media company is expanding into new business…

4 hours ago

This website uses cookies.